Quick query....Dsis started renting her flat out in 2011 as she was made redundant and had to move to an area with better job prospects in her field. Flat has gone down in value (as seemingly have all properties anywhere but London) and the £300 rent she receives per month seems to largely go on repairs and maintenance (damp problems, boiler problems, broken washing machines etc which she never had herself when living there for 5 years...). The flat was also empty for 4 months while the agency found tenants. Rubbish agency but Dsis is now busy with FT job other side of country so can't deal with it herself.
She has to rent it out as property is in negative equity but the 2011/12 profit was only about £900 after repairs, insurance, agency fees, mortgage interest etc. According to the HMRC website, you do self assessment if you make over £2500 as a landlord but makes no mention of lesser amounts. Does anyone know what the process is for profits of less than this? Seems unfair to pay tax when house has gone down in value and Dsis is renting in expensive SE and paying PAYE through work but I assume she has to. HMRC site unhelpful!
Anyone know what she should do? TIA
Please or to access all these features
Please
or
to access all these features
Join our Property forum for renovation, DIY, and house selling advice.
Property/DIY
paying tax on rental property with very low profit...
12 replies
teachertrainer80 · 22/01/2013 10:40
OP posts:
Please create an account
To comment on this thread you need to create a Mumsnet account.